Saraya Aqaba to increase capital by JD430m

The Board decided to call for an extra-ordinary general assembly meeting before the end of this month to consider the proposal, which would increase the company's capital to JD765m (over $1bn).

The Board stated it will not seek external financing, reiterating that Saraya Jordan, which holds a 38% share in Saraya Aqaba, is fully committed to provide for the proposed raise in case the amount could not be fully subscribed by the shareholders.

At its Monday meeting, the Board was briefed on the progress of the bid evaluation process for selection of the successful contractor who will carry out the remaining construction work on its project in the port city of Aqaba, which will see the creation of a master-planned community featuring commercial, residential, tourist, recreational and infrastructure facilities.

The capital injection comes as Saraya Aqaba is entering the implementation stage. Construction work is expected to begin following the award of the contract for the first phase of the remaining work towards the end of the first quarter of 2013, which includes four hotels, a conference palace, Souk Saraya, a beach club, a water park, infrastructure, service quarters and part of the residential units.

The capital increase will propel Saraya Aqaba to the ranks of the biggest companies in Jordan by market capitalization. It will facilitate the company's plans for making a genuine contribution to the development of Aqaba and the Kingdom at large, through boosting economic activity, tourism and creating job opportunities for many local firms and thousands of Jordanians.